AGP Executive Report

Tourism Pressure & Crowd Rules: Amsterdam, Barcelona, Dubrovnik and other hotspots are adding caps, booking systems and cruise limits as travel rebounds toward record levels, with Amsterdam capping overnight stays and cruise calls. World Cup Kit & Matchday Plans: FIFA confirmed Croatia won’t wear its red-and-white chequered home shirt vs England—Croatia will use blue instead—while Dubrovnik extended bar and restaurant hours for Croatia’s group matches. Local Summer Push: Vela Luka is betting on outdoor events and local food, launching “Vela Luka Outdoors” and adding farm tours and a new official souvenir search. Croatia Economy Watch: New data suggests Croatia’s growth is slowing after years of expansion, with tourism no longer able to carry everything alone. Anti-Inflation Clash: Croatia’s new anti-inflation measures are drawing anger from tourism landlords and private accommodation owners. Road Chaos Ahead: Authorities warn of early weekend congestion toward the coast as summer traffic ramps up. EU Tech Shift: The European Parliament replaced Google with France’s Qwant on official computers, citing digital sovereignty. Regional Air Dispute: Slovenia refused an Israir landing in Ljubljana, forcing diversion to Zagreb amid claims of political targeting. Croatian Sports Spotlight: Hull City’s Croatian keeper Ivor Pandur celebrated promotion after clean sheets at Wembley, and Luka Modrić is among the World Cup’s record number of players over 40.

World Cup Watch in Dubrovnik: Mayor Mato Franković approved extended late-night hours for Dubrovnik restaurants and bars on Croatia match nights, letting venues stay open until 2 a.m. (June 17 vs England), 3 a.m. (June 24 vs Panama) and 2 a.m. (June 27 vs Ghana), with operators told to keep order, respect noise rules and alert police if problems arise. War Veterans Memorial: Župa Dubrovačka launched a public consultation for a dedicated memorial room honoring local Croatian war veterans, aiming to finish by year-end and seek co-financing from the Ministry of Croatian Veterans. Croatia–Bosnia Politics: The Homeland Movement is pushing for a new federal unit/third entity in Bosnia and Herzegovina, saying Croats are being outvoted, prompting a coalition meeting after PM Plenković said he wasn’t informed. Croatia Economy & Finance: Croatia’s banks posted a strong start to 2026, with €419.7m net profit in Q1, higher than last year, while loan quality remains solid. Travel & Tourism Rules: Croatia passed a law allowing municipalities to restrict overnight alcohol sales in shops (bars and restaurants stay exempt), targeting late-night drinking linked to tourist-resident friction. Aviation Dispute: Israir flights to Ljubljana were diverted to Zagreb after Slovenia denied landing permission, with Israir calling it politically motivated and a potential EU air-agreement breach. Infrastructure & Big Projects: Croatia cleared the way for the Croatia Ring F1 track after approving an environmental impact assessment, and a major rail upgrade on the Dugo Selo–Novska corridor is set to move forward.

Tourism & Culture: Dubrovnik is gearing up for a busy Saturday with majorette groups parading along Stradun and a Giuliano concert in Orašac, while Zagreb Classic returns June 19–July 3 with free open-air classical performances across the city. Air Connectivity: Ryanair launched a new seasonal Budapest–Dubrovnik route, adding more access for Hungarian visitors as the airport expands beyond peak season. Sports & World Cup Prep: Croatia coach Zlatko Dalić urged calm after a 2-0 friendly loss to Belgium in Rijeka, with Croatia testing a 3-4-2-1 setup ahead of the World Cup. Economy Watch: Croatia’s inflation eased in May to 5.2% year-on-year, with energy still the biggest driver. Border & Logistics: Croatia’s Interior Ministry says truck delays at some crossings are linked to a customs system upgrade, not police border control. Local Life & Overtourism: Dubrovnik plans stepped-up fines for tourist-season behaviour, while Croatia opened a new tourism office in Berlin to push the German market. Community & Lifestyle: A Dubrovnik-based life coach launched a programme to help expats settle in Croatia, and a family cyclist scene near Kupari went viral.

World Cup Countdown: FIFA has published the full rosters for all 48 teams, with 1,248 players heading to the June 11–July 19 tournament in the US, Canada and Mexico, including 357 returning and 891 first-timers. Croatia Football: Croatia fell 2-0 to Belgium in a Rijeka warm-up as Dalić tested a new 3-4-2-1 setup; Youri Tielemans scored and Romelu Lukaku sealed it late. Inflation Watch: Croatia’s annual inflation eased to 5.2% in May (from 5.8% in April), with energy still the biggest driver (+16.9% y/y). Dubrovnik & Coast: Dubrovnik completed a €421,000 drainage upgrade at Lapad to end recurring flooding, while sea testing found 124 beaches rated “excellent” in early 2026. Tourism & Travel: Croatia’s tourist board opened a new Berlin office to strengthen Germany coverage, and new year-round fast catamaran lines were approved for Dalmatian island routes. Tech in Croatia’s Orbit: Robotaxi plans keep expanding in Europe, with Uber and partners announcing a Munich pilot.

World Cup Squads: Croatia’s coach Zlatko Dalić has named an unchanged 26-man squad for FIFA 2026, with Luka Modrić set to lead in what’s expected to be his final tournament; Croatia face England, Ghana and Panama in Group L. Croatia-Germany Tourism: The Croatian National Tourist Board opened a new representative office in Berlin to boost promotion in Germany, Croatia’s biggest tourism market, alongside its Munich office. Health & Care in Zagreb: A free patient accommodation centre “Križ” on Vrhovec in Zagreb has started taking oncology patients needing temporary stays during treatment. Football Transfers: Arsenal teenager Josh Nichols, 19, is leaving for Croatian club NK Kustosija on a two-year deal. Regional Travel: Seasonal ferry services resumed between Montenegro and Dubrovnik, with Budva–Dubrovnik and Kotor–Dubrovnik routes running through late September. Dubrovnik Green Upgrade: Dubrovnik secured over €1.4m in EU funding to renovate Baltazar Bogišić Park, including new paths, trees, shrubs and a children’s playground.

World Cup Focus: Zlatko Dalić named an unchanged 26-man Croatia squad with Luka Modrić set to lead what could be his likely final World Cup, and the team will test a new 3-4-2-1 shape against Belgium in Rijeka on Tuesday. Local Health & Care: Zagreb’s free Patient Accommodation Centre “Križ” on Vrhovec has started taking oncology patients for temporary stays during treatment. Dubrovnik & Tourism: The City of Dubrovnik secured €1.4m EU funding to revamp Baltazar Bogišić Park, while preliminary eVisitor data shows Dubrovnik up to 850,159 overnight stays from Jan 1–May 22 (+1%). Infrastructure: Zagreb launched a design competition for the Jarunski Bridge over the Sava, aiming to ease western-city congestion and add a tram link. Summer Rules: Croatia-wide ban on lighting open fires in outdoor spaces starts June 1, with strict exceptions. Economy & Prices: Fuel is expected to get slightly cheaper from Tuesday, and Croatia’s inflation is forecast to ease in May. Culture & Events: Dubrovnik’s Stradun Classic returns later this summer, and A$AP Rocky added a Zagreb Arena date for Oct 6.

ECB Leadership: Croatia’s Boris Vujčić has become vice-president of the European Central Bank, replacing Spain’s Luis de Guindos, as Croatia’s euro role deepens. Inflation Watch: Speaking in Dubrovnik, Vujčić said May inflation should ease from April’s 5.8%, with food and services cooling, while energy risks remain the key driver. Wildfire Rules: From 1 June, Croatia bans lighting fires in open spaces nationwide, with only strict, pre-approved exceptions. Fuel Prices: Petrol is forecast to drop by about 3 euro cents per litre and diesel by up to 5 euro cents, with blue diesel expected to fall the most. Tourism Update: Dubrovnik continues climbing, with 850,159 overnight stays in the first 22 days of May (up 1%) and 850,000+ for the year-to-date period. World Cup Focus: Zlatko Dalić says Croatia will be “compact and solid” defensively in the opening match vs England on 17 June. Tourism Recognition: Cavtat and Konavle won the Golden Apple Award for preserving heritage while growing sustainably. Digital Money Debate: At the Dubrovnik Economics Conference, Bank of England policymaker Megan Greene said stablecoins may be overtaken by tokenised deposits.

Media Freedom Watch: The European Federation of Journalists says the sale of Adria News Network outlets (including N1, Nova S and Vijesti) to Alpac Capital raises serious fears for editorial independence and media pluralism across the Western Balkans. Transport & Tourism: RegioJet has reopened its Prague-to-Adriatic bus corridor, adding daily service from June 12 and a second route toward Rijeka and Crikvenica, with several departures already sold out. Water Security in the South: Work has started in Opuzen on the second phase of the Lower Neretva freshwater system to stop seawater intrusion, with a pumping station, distribution pipelines and irrigation for about 2,000 hectares planned over four years. Dubrovnik in the spotlight: A new 4K YouTube video is pushing Dubrovnik’s “Pearl of the Adriatic” appeal worldwide, while Jadrolinija rolls out “Barba AI” to speed up summer travel questions and ticket support. Finance & Policy: In Dubrovnik, Bank of England policymaker Megan Greene said stablecoins may be overtaken by tokenised deposits, while the Fed’s Christopher Waller defended stablecoins as a payments innovation. Croatia’s economy: The Croatian National Bank expects May inflation to cool as food and services price growth eases, with energy costs still the key risk.

Central Bank Independence Under Strain: Policymakers in Croatia and across Europe are pushing unpopular anti-inflation steps as a new price shock forces higher rates to last longer, raising fears of political interference and weaker trust in central banks. Tourism Rules & Consumer Protection: Croatia’s Parliament backs amendments to the Trade Act letting local authorities set alcohol sales hours and tightening checks to protect minors, including online sales via e-Građani. Real Estate Overhaul: The government approved a new legal framework for estate agents, aiming to boost transparency and stop practices like tying viewings to agency deals. World Cup Watch in Zagreb: Zagreb extends restaurant and bar hours on Croatia match days to help fans gather for late kick-offs. Travel & Safety: A minibus skidded off the road near Predjama Castle, injuring two passengers seriously. Connectivity Boost: Ryanair adds a new winter Zagreb–Warsaw route, twice weekly from October 26. Statehood Day: Croatia marks 36 years since the first multi-party Parliament session in 1990.

Alcohol Rules Tightened: Croatia’s Parliament adopted amendments to the Trade Act letting municipalities set local alcohol sales hours and adding tougher checks for minors, including online sales verified via e-Građani. Statehood Day: Croatia marks 36 years since the first democratically elected multi-party Sabor convened on 30 May 1990, paving the way to independence in 1991. Tourism Pressure Points: As summer demand rises, Croatia faces more online tourism scams and growing off-season strain on hospitality businesses; apartment owners are pushing back against new short-term rental rules and taxes. Public Health Focus: Croatia ranks 3rd in the EU for smoking rates, with experts calling for better cessation support, stronger regulation, and improved healthcare recognition of nicotine addiction. Economy Watch: Croatia’s GDP grew 2.2% in Q1 2026, extending a 21-quarter growth streak, though momentum eased from late 2025. Travel Disruption: Ryanair has stopped serving 19 airports across Europe since March 2025, shrinking its network slightly. World Cup Build-Up: Croatia’s 26-man FIFA World Cup squad is set, led by Luka Modrić and coach Zlatko Dalić.

French Open Shockwaves: Jannik Sinner’s surprise exit has left the men’s draw wide open, and Novak Djokovic is now chasing a record 25th Grand Slam—after surviving a tough run to reach the third round, where he’ll face Joao Fonseca. Croatian Football on the Global Stage: Croatia’s World Cup 2026 squad is set, led by Luka Modrić and Zlatko Dalić, with Josko Gvardiol and Ivan Perišić among the key names. Tourism Rules Tighten: Croatia’s parliament approved a law letting local governments restrict shop alcohol sales at night to curb drunk-tourist disorder—Split is expected to move to a 9pm–6am ban. Economy Watch: Croatia’s GDP grew 2.2% in Q1 2026, extending a 21-quarter growth streak, though the pace slowed. Regional Diplomacy: Bosnia and Herzegovina opened an honorary consulate in Zadar, underscoring closer Croatia–BiH ties. Infrastructure & Daily Life: Varaždin signed a €16m deal for a new energy-efficient pool complex, while Croatia also announced summer international seasonal trains linking Croatia with Central Europe.

World Cup Build-Up: Zlatko Dalić named Croatia’s 26-man squad for the 2026 FIFA World Cup, with Luka Modrić set to captain and Josko Gvardiol returning after injury. Croatian Football & Fashion: MACKAGE launched an official Croatia national team capsule collection for the 2026 World Cup, plus a new campaign featuring Modrić, Perišić, Gvardiol and others. Tourism Pressure Points: Coastal water shortage warnings are back as summer heat and visitor demand strain supplies, while Croatian airports are gearing up for another tourism surge. Road Travel Reform: Croatia is pushing ahead with a plan to end summer motorway toll-booth chaos by moving toward fully electronic tolling. Digital Nomads: Croatia ranks eighth globally in the 2026 Digital Nomad Index, highlighting its growing appeal for remote workers. Sports Beyond Football: Croatia will host the world’s first 4×4 water polo championship in a bid to modernize the sport. Economy Watch: Croatia’s Q1 GDP grew 2.2% year-on-year, the slowest pace in just over five years.

Croatian Economy: Croatia’s GDP grew 2.2% year-on-year in Q1, but the pace is the slowest in just over five years as consumption and investment cool and exports/imports slump. Anti-Inflation Push: The government unveiled a new package to cut inflation toward 2% by year-end, including budget savings, a freeze on some public wages/benefits, and a new 50% tax on “excess” profit margins for medium and large firms, plus changes for flat-rate tourism and short-term rentals. Jobs for Returnees: Since 2022, 1,802 people have returned via the “Biram Hrvatsku” scheme, with a bigger “2.0” version planned later this year aimed at highly educated professionals and shortage occupations. Education Modernisation: Croatia will issue school certificates and diplomas digitally from the end of the 2025/26 academic year, stored in a secure register and accessible via e-Građani. Security Update: Police reported crime fell 2.5% in 2025 and illegal border crossings dropped 44%, with a crime detection rate above 70% for the sixth straight year. Culture & Tourism: Dubrovnik kicks off its 77th Summer Festival season on July 10 with the Munich Radio Orchestra, and Statehood Day in the city features a free klapa concert in front of St Blaise Church.

MOL Bribery Ruling: Croatia’s arbitration case against MOL CEO Zsolt Hernádi was rejected again, with the court saying the bribery allegations were not proven and calling the key state witness unreliable, though MOL’s damages claim was also dismissed. French Open Heat & Djokovic: Novak Djokovic advanced at Roland-Garros after a four-set win over Valentin Royer, but blasted the Paris crowd for “no respect” and said extreme heat may require match rescheduling. Archaeology in Pelješac: A rare 2,000+ year-old terracotta head showing a Greek theatre mask was found in Crno Jezero Cave, adding to evidence the site served as an ancient sanctuary. Dubrovnik Tourism Rules: Dubrovnik suspended outdoor terrace rights for seven Old City venues after inspections found they exceeded contracted public-space limits. Travel & Summer Logistics: Drivers are warned of temporary lane closures on Pelješac Bridge for the May 29 night race, while Croatia’s border traffic headaches are expected to return as summer crowds build. Local Life & Culture: Sephora opens in Split at Mall of Split; Pop Up by the Lake returns to Zagreb’s Bundek for its 10th anniversary. Business Watch: Croatia’s bakery sector is expanding fast but profits are under pressure as costs rise and consolidation reshapes the market.

Croatia–Hungary Gas Fight: Croatia says MOL’s commercial arbitration claim over the INA gas business was dismissed by ICSID, with MOL ordered to pay Croatia €775,000 in costs and interest. Defense Modernisation: Defence Minister Ivan Anušić says Croatia is starting its first “modernisation” of the armed forces and aims to make the army one of Europe’s strongest small forces by 2030, including air defence, corvettes, Black Hawk helicopters, Rafale upgrades, new radars and anti-drone tech. Naval Industry Deal: Navantia signed MoUs in Zagreb with Uljanik Brodogradnja 1856 and Nortes Blue to build an integrated proposal for Croatia’s multipurpose corvette programme, tying in national industry. Dubrovnik Tourism Tech & Culture: Dubrovnik will launch an AI-powered self-guided adventure using clues and local storytelling, and the city’s Stradun will host “Klape na Stradunu” on Aug. 9 with major klapa groups. New Citizen Register: From June 1, Croatia’s Central Population Register (SRS) opens to citizens via e-Građani or local tax offices, with it set to underpin social and other rights from Jan. 1, 2027.

Travel Surge: Cork Airport is bracing for a big June Bank Holiday rush, expecting about 69,000 passengers as post-primary schools break and seasonal routes restart—Aer Lingus launches Santiago de Compostela, while Ryanair resumes Carcassonne, La Rochelle, Rhodes and Zadar. Heat Alert: Croatia is also in the grip of an unusually long May heatwave, with multiple record highs—Dubrovnik and Rijeka among the places setting new benchmarks—while severe weather warnings point to possible storms and hail later. Croatia in the Spotlight: The Croatian National Tourist Board has unveiled a new World Cup-timed campaign starring John Malkovich, leaning hard into the American market and the laid-back Dalmatian idea of “fjaka.”” Finance Watch: Croatian citizens have poured nearly €16bn into state bonds, with 8.5% of public debt now held directly by locals. Sports & Culture: Modrić is reportedly fast-tracking a retirement call after AC Milan’s Champions League collapse, and Dubrovnik is set to host the first 4×4 Water Polo World Championship in late summer.